Women are influencing a new generation to save.

Westpac research released today has shown that women are leading the way when it comes to educating their children* on savings and finances with nearly three quarters (73.4%) of women encouraging their children to manage their own finances.

The survey also uncovered that women are big savers with 3 in 4 women saving money each month and 47.4% of women saving over 5% of their monthly income.

Figures from the Westpac Women’s Deposits Report reveal that three quarters of women (76.3%) are saving at least some of their monthly income and are passing on these good habits to the next generation, with three in four mothers saying their children* have their own bank account(s) for savings.

Director of Women’s Markets at Westpac, Larke Riemer, says the research paints a positive picture of women taking control of their finances.

“It’s good to see that only 16.8% of women rely largely on their partner for financial guidance. More and more, women are controlling the household budgets, savings plans and educating their children on the best financial practises.

“It is also positive to see that women are saving more and educating their children to save more. We know that the earlier children develop good financial habits, the better they will be in the long run. It is important that women share their financial knowledge with younger generations to start them saving early, setting them up for the future,” said Ms Riemer.

When it comes to spending habits, the report revealed that over four in five women have a do a lot of research before purchasing anything they see as expensive.

“Women are often perceived to be the ‘big spenders’ in relationships, but as the research suggests women are very considered with their purchases. In fact, 81.5% of women feel they have to sacrifice non-essential expenses to meet their savings targets, a great sign that women are taking their saving targets seriously.

“It was interesting to see that Gen Y women have a significantly higher propensity to forego non-essential expenses to meet their savings targets. This shows that we are already seeing a new generation of financially savvy young women who are taking their savings seriously and are considered about the way they spend their money,” said Ms Riemer.

KEY FINDINGS

Children and Finances

•73.4% of mothers encourage their children to manage their finance themselves

•Three in four mothers with children (76.9%) say that their children have their own bank account(s) for savings.

•The majority of women with children under 18 years old (85.0%) are involved in their children’s education about money.

Savings Habits

•76.3% of women save money each month.

•47.4% of women save over 5% of their monthly income

•Only 16.8% of women rely to a large extent or completely on their partner for financial advice.

•More than half of women (53.4%) describe themselves as predominantly a saver with regards to their personal finances.

•72.0% of women define themselves as good planners when it comes to future finances.

•82.7% have a tendency to do a lot of research before purchasing anything seen as expensive.

•Just under two thirds of women surveyed (64.4%) feel they have to regularly forego “eating out” to meet their savings targets.

•Gen Y women have a significantly higher propensity to forego non-essential expenses to meet their savings targets including clothes/shoes (71.7% v 60.8%), and coffee (20.0% v 16.2%) than the rest of women surveyed.

Westpac’s Top Savings Tips

1. Set big and small goals

Know how much you want to save and how much you need to save each week to achieve this. Writing down how much you save each week will help you keep track of you spending and promote good saving.

2. Pay yourself first

When the pay from your job gets paid into your bank account organise for your bank to automatically deposit an amount (e.g. 10%) into a separate high interest savings account.

3. Create and review your budget

Try to identify the areas where you could possibly spend less without affecting the lifestyle you are accustomed to.

4. Avoid emotional spending

For some it's chocolate, for others it's a new pair of shoes or something for the car and for some it is a big ticket item. Everyone has something that gives them the urge to spend. You need to identify your weaknesses and try to control them.

5. Take your own lunch to work

You could save up to $5 (or more) every day you do so. Cutting back on the daily coffee can also help.

Visit rubyconnection.com.au/events to find out what workshops are being held in your closest capital city.

All statistics in this document are sourced from: Westpac Women’s Deposits Survey, June 2012, powered by Coredata – Result summary available on request.